Balchem Corporation (BCPC)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.37 | 1.36 | 1.42 | 1.47 | 1.54 | 1.56 | 1.61 | 1.67 | 1.73 | 1.82 | 1.78 | 1.37 | 1.37 | 1.33 | 1.35 | 1.38 | 1.41 | 1.42 | 1.45 | 1.52 |
Balchem Corporation's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00, indicating that the company has no significant debt obligations compared to its total assets, capital, and equity. This signifies a low level of financial risk and a good ability to meet its debt obligations.
The Financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has shown some fluctuations over the years. Starting at 1.52 in March 31, 2020, the ratio has generally trended downwards, except for a spike in June 30, 2022, and September 30, 2022. The ratio dropped to 1.36 by September 30, 2024, indicating that the company has reduced its reliance on debt financing.
Overall, a consistent low debt-to-assets, debt-to-capital, and debt-to-equity ratios, coupled with a decreasing financial leverage ratio, suggest that Balchem Corporation has maintained a prudent and conservative approach to managing its debt levels, strengthening its solvency and stability in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.06 | 9.16 | 7.86 | 7.48 | 7.12 | 6.86 | 7.50 | 9.34 | 14.21 | 26.02 | 55.86 | 55.04 | 48.13 | 41.48 | 35.10 | 33.75 | 25.23 | 22.14 | 18.56 | 16.84 |
Balchem Corporation's interest coverage ratio reflects the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). From March 31, 2020, to June 30, 2021, the trend shows a consistent improvement in the interest coverage ratio, indicating a strengthening ability to cover interest expenses. The ratio increased from 16.84 to 35.10 during this period, peaking at 55.86 on June 30, 2022.
However, there was a notable decline in the interest coverage ratio starting in September 30, 2022, reaching a low of 6.86 on September 30, 2023. This significant drop in the ratio suggests that the company's EBIT may have decreased relative to its interest expenses during this period, potentially raising concerns about its ability to comfortably service its debt.
Subsequently, from December 31, 2023, to December 31, 2024, the interest coverage ratio showed a modest improvement, increasing from 7.12 to 11.06. This uptick indicates a slightly better ability to cover interest payments with earnings in the last quarter of 2024, although the ratio remains below the levels seen in the earlier periods.
In summary, Balchem Corporation experienced a period of strong interest coverage followed by a significant decline and a subsequent gradual recovery. It is essential for investors and creditors to monitor the interest coverage ratio closely to assess the company's financial health and its capacity to manage its interest obligations effectively.